UK small and medium-sized enterprises (SMEs) feel they are being let down badly by the major utilities companies, a new study has revealed.
In a finding which may alarm the so-called Big Six, 33% of SMEs questioned by the Forum of Private Business (FPB) described the level of service they are receiving as 'poor' or 'very poor'. Many cite contractual issues – including the practice of rolling businesses over on to often more expensive contracts with little warning – as being a major gripe.
Just 11% of SME owners believe utilities contracts are easy to understand, while 35% think it is difficult to switch suppliers and 40% feel that contractual terms and conditions are poor. Some 69% believe it is difficult to keep track of contract anniversaries and switching windows, with 31% relying on renewal letters to keep them informed. Meanwhile, 47% of respondents believe they are paying too much for gas, electricity and water.
Ofgem does not have the necessary powers to protect all SMEs and unless proper levels of service and transparency are established which allow businesses to make informed choices, they will continue to suffer at the hands of utilities providers. There is however one glimmer of hope, under Ofgem's new utilities licensing condition 7A, many micro businesses – those with fewer than ten staff members – can have their contract rolled over for just a single year.
APA
In a finding which may alarm the so-called Big Six, 33% of SMEs questioned by the Forum of Private Business (FPB) described the level of service they are receiving as 'poor' or 'very poor'. Many cite contractual issues – including the practice of rolling businesses over on to often more expensive contracts with little warning – as being a major gripe.
Just 11% of SME owners believe utilities contracts are easy to understand, while 35% think it is difficult to switch suppliers and 40% feel that contractual terms and conditions are poor. Some 69% believe it is difficult to keep track of contract anniversaries and switching windows, with 31% relying on renewal letters to keep them informed. Meanwhile, 47% of respondents believe they are paying too much for gas, electricity and water.
Ofgem does not have the necessary powers to protect all SMEs and unless proper levels of service and transparency are established which allow businesses to make informed choices, they will continue to suffer at the hands of utilities providers. There is however one glimmer of hope, under Ofgem's new utilities licensing condition 7A, many micro businesses – those with fewer than ten staff members – can have their contract rolled over for just a single year.
APA
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